There is vast difference between private companies and public companies as the latter is traded publicly and everything has to be a lot more transparent value wise. Goodwill and assets valuation are closer to the truth.
Private companies who are good tend to undervalue the accumulated assets and not carry goodwill in their books. Some good private companies are actually worth many times more than what the numbers indicate. There is no hanky panky on the part of their accountants nor auditors. They are there to certify the accounts and not value the company. Most clowns can't tell the difference.
Secondly, the vast majority of private companies do not allow you sell your shares openly. There will be a clause where they have the right of first refusal. This is to protect the company interest. If not one disgruntled minority idiot will sell his shares to the company's direct competitor. The privacy in a private company is completely gone.
Thirdly, a buyer can sue you to kingdom come if the company is not what it is or a criminal offence if it is insolvent and that is not made known and continues to trade.
The accountant is thus more important than a buyer. As it is a sale, he will value the company and get them to reveal the conditions of the assets and ask for revaluation and marked to market. Once the majority of shareholders know that you want to sell, they will offer you a premium to get it over with. This is avoid it land in competitors hands.
I know of a one engineering company which was sold for $25 million shortly after a minority shareholder unloaded his shares for pittance to a private buyer. The private buyer got his own accountant to check the valuation. The private buyer went straight to majority owners and got their consent and offered some of the shares that he will receive. He was in effect a proxy when realised the value. His accountant is not obliged to reveal anything to any party.
If your shares are worth 6 figures, take this seriously.
Situation like this remind me of clowns who fly to Philippines to find the "best maid".
Hi can please tell me why huh?
Q1 i guess is to find out the actual amount the pte ltd worth.
Q2 no idea at all.
why look at balance sheet and PL not going to help me leh?
Many Thanks